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Chapter 1:
Introduction to ProjectManagement
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Learning Objectives
• Understand the growing need or better projectmanagement! especia""# or inormation
techno"og# projects
• $%p"ain what a project is and provide e%amp"eso inormation techno"og# projects
• &escribe what project management is and
discuss 'e# e"ements o the project managementramewor'
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Learning Objectives
• &iscuss how project management re"ates to
other discip"ines
• Understand the histor# o project management
• &escribe the project management proession!
inc"uding recent trends in project management
research! certiication! and sotware products
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Project Management *tatistics
• +he U,*, spends -2,( tri""ion on projects ever# #ear! anamount e.ua" to one/.uarter o the nation0s gross
domestic product &P3,
• +he wor"d as a who"e spends near"# -14 tri""ion o its-)4,5 tri""ion gross product on projects o a"" 'inds,
• More than si%teen mi""ion peop"e regard project
management as their proession6 on average! a project
manager earns more than -72!444 per #ear,8
8PMI! +he PMI Project Management 9act oo'! *econd $dition! 2441
PMI Project Management Institute 3
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More Inormation
on Project Management
• More than ha" a mi""ion new inormation techno"og#
I+3 app"ication deve"opment projects were initiated
during 2441! up rom (44!444 in 2444,8
• 9amous business authors and consu"tants are stressingthe importance o project management, <s +om Peters
writes in his boo'! Reinventing Work: the Project 50!
=+o win toda# #ou must master the art o the project>?
8+he *tandish roup! =C@<O* 2441: < Aecipe or *uccess?
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• I+ projects have a terrib"e trac' record < 1DD; *tandish roup stud# C@<O*3 ound that
on"# 1B,2E o I+ projects were successu" and over
(1E were cance"ed beore comp"etion! costing over
-71 in the U,*, a"one
• +he need or I+ projects 'eeps increasing
In 2444! there were (44!444 new I+ projects
In 2441! over ;44!444 new I+ projects were started
Motivation or *tud#ing Inormation
+echno"og# I+3 Project Management
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<dvantages o Using 9orma" Project
Management
• etter contro" o inancia"! ph#sica"! and humanresources
• Improved customer re"ations• *horter deve"opment times
• Lower costs• @igher .ua"it# and increased re"iabi"it#• @igher proit margins
• Improved productivit#• etter interna" coordination• @igher wor'er mora"e
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Fhat Is a ProjectG• < project is =a temporar# endeavor underta'en
to accomp"ish a uni.ue product or service?
PMOH uide 2444! p, )3
• <ttributes o projects
uni.ue purpose
temporar#
re.uire resources! oten rom various areas
shou"d have a primar# sponsor andJor customer
invo"ve uncertaint#
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*amp"es o I+ Projects
• Korthwest <ir"ines deve"oped a new reservations#stem ca""ed AesKet see case stud# on companion
Feb site at www,course,comJmisJschwa"be3
• Man# organiations upgrade hardware! sotware!and networ's via projects
• Organiations deve"op new sotware or enhance
e%isting s#stems to perorm man# businessunctions
• Kote: =I+ projects? reers to projects invo"ving
hardware! sotware! and networ's
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+he +rip"e Constraint
• $ver# project is constrained in dierent wa#s b# its
*cope goa"s: Fhat is the project tr#ing to accomp"ishG
+ime goa"s: @ow "ong shou"d it ta'e to comp"eteG
Cost goa"s: Fhat shou"d it costG
• It is the project manager0s dut# to ba"ance these
three oten competing goa"s
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9igure 1/1, +he +rip"e Constraint o
Project Management
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+he 2441 *tandish roup Aeport *howed
Decided Improvement in Project *uccess
• Time overruns signifcantly decreased to163% compared to 222%
• Cost overruns were down to 145%
compared to 18%• !e"uired #eatures and #unctions were up
to 6$% compared to 61%
• $8&&& '()( pro*ects were success#ul
compared to 28&&&• 28% o# +T pro*ects succeeded compared to
16%
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Fh# the ImprovementsG
T,e reasons #or t,e increase in success#ulpro*ects vary(-
. T,e average cost o# a pro*ect ,as /een moret,an cut in ,al#(
. 0etter tools ,ave /een created to monitor andcontrol progress
. 0etter silled pro*ect managers wit, /ettermanagement processes are /eing used(
-T,e )tandis, roup C) 2&&17 !ecipe #or)uccess 2&&19
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Fhat is Project ManagementG
Project management is =the app"ication o
'now"edge! s'i""s! too"s! and techni.ues to
project activities in order to meet project
re.uirements? PMI8! Project Management od#o Hnow"edge PMOH uide3! 2444! p, B3
8+he Project Management Institute PMI3 is an internationa"
proessiona" societ#, +heir web site is www,pmi,org,
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9igure 1/2, Project Management
9ramewor'
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Project *ta'eho"ders
• *ta'eho"ders are the peop"e invo"ved in oraected b# project activities
• *ta'eho"ders inc"ude
the project sponsor and project team support sta
customers
users supp"iers
opponents to the project
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D Project Management Hnow"edge
<reas
• Hnow"edge areas describe the 'e# competenciesthat project managers must deve"op ) core 'now"edge areas "ead to speciic project
objectives scope! time! cost! and .ua"it#3
) aci"itating 'now"edge areas are the means throughwhich the project objectives are achieved humanresources! communication! ris'! and procurementmanagement3
1 'now"edge area project integration management3aects and is aected b# a"" o the other 'now"edgeareas
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Project Management +oo"s and
+echni.ues
• Project management too"s and techni.ues assist project
managers and their teams in various aspects o project
management
• *ome speciic ones inc"ude Project Charter! scope statement! and F* wor' brea'down
structure3 scope3
antt charts! networ' diagrams! critica" path ana"#sis! critica"
chain schedu"ing time3 Cost estimates and earned va"ue management cost3
*ee +ab"e 1/1 on p, 11 or man# more
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@ow Project Management Ae"ates to
Other &iscip"ines
• Much o the 'now"edge needed to manage
projects is uni.ue to the discip"ine o project
management
• Project mangers must a"so have 'now"edge and
e%perience in
genera" management
the app"ication area o the project
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@istor# o Project Management
• *ome peop"e argue that bui"ding the $g#ptian p#ramids was a project! as was bui"ding thereat Fa"" o China
• Most peop"e consider the Manhattan Project to be the irst project to use =modern? projectmanagement
• +his three/#ear! -2 bi""ion in 1D)B do""ars3 project had a separate project manager and atechnica" manager
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*amp"e antt Chart
+he F* is on the "et! and each tas'0s start and inish date
are shown on the right using a ca"endar timesca"e, $ar"# antt
Charts! irst used in 1D15! were drawn b# hand,
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*amp"e Ketwor' &iagram
$ach bo% is a project tas' rom the F*, <rrows show dependencies
between tas's, +he bo"ded tas's are on the critica" path, I an# tas's on the
critica" path ta'e "onger than p"anned! the who"e project wi"" s"ip
un"ess something is done, Ketwor' diagrams were irst used in 1D;7 on the
Kav# Po"aris project! beore project management sotware was avai"ab"e,
* " $ i P j M
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*amp"e $nterprise Project Management
+oo"
In recent #ears! organiations have been ta'ing advantage o sotware
to he"p manage their projects throughout the enterprise,
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+he Project Management Proession
• +he job o I+ Project Manager is in the "ist o
the top ten most in demand I+ s'i""s
• Proessiona" societies "i'e the Project
Management Institute PMI3 have grown
tremendous"#
• Project management research and
certiication programs continue to grow
+ b" 1 2 + + M i & d I+
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+ab"e 1/2, +op +en Most in &emand I+
*'i""sRank IT Skill/Job Average Annual Salary
1 *L &atabase <na"#st -74!BB)
2 Orac"e &atabase <na"#st -75!1))
( CJCNN Programmer -D;!72D
) isua" asic Programmer -5B!D4(
; $/commerceJava &eve"oper -7D!1B( B Findows K+J2444 $%pert -74!B(D
5 FindowsJava &eve"opert -D(!57;
7 *ecurit# <rchitect -7B!771
D Project Manager -D;!51D
14 Ketwor' $ngineer -72!D4B Pau" Qiv! =+he +op 14 I+ *'i""s in &emand!? "oba" Hnow"edge Febcastwww.globalknowledge.com3 11J24J24423,
P j M H " d
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Project Management Hnow"edge
Continues to row and Mature
• PMI hosted their irst research conerence in une
2444 in Paris! 9rance! and the second one in
*eatt"e in u"# 2442
• +he PMOH uide 2444 is an <K*I standard
• PMI0s certiication department earned I*O D444
certiication
• @undreds o new boo's! artic"es! and presentationsre"ated to project management have been written
in recent #ears
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Project Management Certiication
• PMI provides certiication as a ProjectManagement Proessiona" PMP3
• < PMP has documented suicient project
e%perience! agreed to o""ow a code o ethics!and passed the PMP e%am
• +he number o peop"e earning PMP certiication
is increasing .uic'"#• PMI and other organiations are oering newcertiication programs see <ppendi% 3
th i PMP C tii ti 1DD(
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rowth in PMP Certiication! 1DD(/
2442
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2D
$thics in Project Management
• $thics is an important part o a""
proessions
• Project managers oten ace ethica"di"emmas
• In order to earn PMP certiication!
app"icants must agree to the PMP code o proessiona" conduct
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Project Management *otware
• # 244(! there were hundreds o dierent products to assistin perorming project management
• +hree main categories o too"s e%ist: Low/end too"s: @and"e sing"e or sma""er projects we""! cost under
-244 per user Midrange too"s: @and"e mu"tip"e projects and users! cost -244/;44 per user! Project 2444 most popu"ar
@igh/end too"s: <"so ca""ed enterprise project managementsotware! oten "icensed on a per/user basis
• Project 2442 now inc"udes a separate version or enterprise project management see <ppendi% < or detai"s on Project24423
R C < " P j t M t t
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Rou Can <pp"# Project Management to
Man# <reas
• Project management app"ies to wor' as we"" as
persona" projects
• Project management app"ies to man# dierent
discip"ines I+! construction! inance! sports!
event p"anning! etc,3
• Project management s'i""s can he"p in ever#da#
"ie